Should Real Estate Investors Consider Charleston?
Investors are confident about the outlook in Charleston, South Carolina. We found reasons why you should be excited for what the future holds for Charleston.
It’s been quite a competitive year for purchasing real estate. Investors are keeping their eyes open across the United States trying to find the best deal possible. Part of what makes a great deal is knowing how much potential certain locations have. Any location with a fantastic market outlook with a bright future hardly gets ignored. That’s why we’re here to discuss some exciting reasons to consider Charleston, South Carolina. Investors are quickly recognizing Charleston’s potential: whether they’re in-state or out-of-state. Here’s what we love about Charleston.
A Healthy economy
Charleston has a booming tourist industry because of its charm and hospitality. It has a unique architecture and history and is likely to remain one of the hottest domestic destinations until international travel is back on track. Charleston is often known for having rich historic ties, attractive to tourists, however, this location is picking up steam as buyers are searching for single-family homes.
Realtor.com proved accurate in its forecast for the past year in Charleston. They noted that it’s a place “where a three-bed, two-bath with a yard is quite reasonable.” Charleston is still an affordable market that adds jobs and a number of people every year.
A diverse employer base provides many employment opportunities (safer renters) and the city itself is a great location for an Airbnb investment property. The unemployment rate was down to 2.9% in September 2021, which is a great sign for investors. Those seeking ownership of a rental property may have peace of mind knowing that the job growth is consistently growing. It’s a huge plus for those who worry about vacancies and tenants who can’t pay due to unemployment.
Need we say more?
Plenty of renters
Charleston is an exciting opportunity for investors because it’s less risky than other locations in the U.S. Over 46% of the population are renters with a median monthly rent of $1,135. Combined with the median home price of $286,200 and the previously discussed unemployment rate, investors see high value in Charleston.
As an investor, your time is limited while you search for rental properties. A failed search is much less likely if you are looking in the Charleston area. Affordable housing prices won’t block you out of competition, while promising monthly rents keep you from digging too deep in your pockets. With an abundance of renters, you can search for a rental property without worrying about a dwindling demand of renters.
Senior Director of Research and Lead Economist at Sundae, Polina Ryshakov cited many reasons for investors to consider Charleston. She noted that:
“Even before the pandemic, it broke its visitor records, so whether you are looking for an investment property to flip and preserve that southern charm. Charleston also has a high demand for both, long and short-term rentals. Flips make up about 5.8% of all sales activity and investor activity is 20%, making Charleston ‘underinvested,’ or a market that is expected to attract more investors in the coming years.”
A Place to retire
Along with its amicable weather and gorgeous beaches, there are many other draws for retirees. South Carolina alone has attractive benefits for those who plan on staying and later on, retiring. There’s the property tax rate which is one of the lowest per capita in the nation. Retirement is associated with income deductions and exemptions with Social Security. Investors reap the benefits of steady cash flows and the opportunity for depreciation tax benefits (if needed). As tax law is constantly changing, it’s important to discuss this with a CPA or other tax advisor. In short, Charleston is an attractive area in South Carolina where benefits go to those who stick around.
Almost anybody in real estate markets are looking for properties that will increase in value over time. Charleston is at a point where properties are still affordable, but has been trending in the right direction for years. The median price of a home in Charleston rose in value every year since 2015. In 2015, the average price was $228,500. In 2021, this figure jumped to $357,253 with consistent growth in between.
Investors look for positive, yet predictable trends like Charleston has to offer. It’s a strong enough trend that creates a more predictable forecast in the future. The economy is growing and people are seeking opportunities in the area.
Quality of life
Not only does Charleston have healthy real estate trends, but it’s a place that provides a high quality of life. People are happy and welcoming. It’s a small city, but at the same time Charleston has plenty of restaurants, beaches, public parks, and an airport. The culture is well-known for being rich with a deep historic background. While people do come as tourists, many others move in to stay because there’s so much to offer.
As an investor, quality of life should be taken into consideration. You’ll probably be making trips to the area to check on your rental properties. It’s enjoyable enough to make a vacation out of it if you have the time. Currently, it is one of the top 50 best places to live in the United States. With overall happiness in Charleston, it will likely continue growing which opens the door for more investment opportunities in the future.
A Bright spot for investors
Investors don’t need to fear such a promising outlook in Charleston. It’s an exciting time to invest because Charleston has attractive features like a high population of renters and low unemployment rates. Additionally, this location has affordable options for buyers and renters so competition won’t be as difficult as other places. Overall, Charleston is a beautiful place with an exceptional quality of life that encourages residents to stay.